Nasdaq: USEG www.usnrg.com

Corporate Presentation February 12, 2014

F L O R I D A

Please carefully read the following disclaimer: The information discussed in this Presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). All statements made in or in conjunction with this Presentation, other than statements of historical fact, are forward-looking statements. Examples of such statements in this Presentation concern planned capital expenditures for oil and gas exploration and development projects; cash expected to be available for continued work programs with all our industry partners, and for those projects as to which we do not presently have industry partners; recovered volumes and values of oil and gas approximating third-party estimates of oil and gas reserves; projected increases in oil and gas production; current and anticipated drilling and completion activities; anticipated production and price differentials and decline rates from initial production rates, over time, of the daily volume of oil and natural gas produced from wells completed in the Williston Basin and elsewhere; the relationship of national oil and gas natural prices to prices paid for such production in the Williston Basin [and other areas in which we operate]; the drilling of additional wells without industry partners; expected well spacing for wells to be drilled; future cash flows and borrowings; pursuit of potential acquisition opportunities; our expected financial position; our business strategy; future occupancy rates for the energy-related residential housing complex in Gillette Wyoming and the financial performance of the complex; and other plans and objectives for future operations. These forward-looking statements are typically identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential,” “should,” “could,” and similar terms and phrases. Though we believe that the expectations reflected in these statements are reasonable, they do involve certain assumptions, risks and uncertainties. Results could differ materially from those anticipated in these statements as a result of certain factors. Our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in the section entitled “Risk Factors” in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and other filings we make with the Securities and Exchange Commission, all of which are incorporated by reference in this Presentation. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements made above, elsewhere in this Presentation and as incorporated from our public filings. All of such forward-looking statements are made as of the date of this Presentation, and except as otherwise required under securities laws, we do not assume a duty to update any forward-looking statement, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise. Actual timing of drilling and completing wells, well performance and the anticipated number of gross and net wells could vary in each of these cases. Amounts budgeted for each regional drilling program are also subject to change based on a number of factors including, but not limited to, timing, well costs, drilling and completion success, availability of capital and weather-related issues. Anticipated well performance could also vary significantly from those modeled internally. Furthermore, funds allocated for specific drilling programs under the 2013 CAPEX budget will be re-allocated to other drilling programs if initial results are below expectations. IP rates, test results and similar data from exploration and development activities are not necessarily reflective of the production, reserves or cash flow that may ultimately be generated from the well in question. Our ability, or the ability of the relevant operator, to maintain expected levels of production from a well is subject to numerous risks and uncertainties, including those discussed and referenced above.

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Safe Harbor Disclosure

Market Data

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Independent E&P Company Focused on Exploring for and Producing Domestic Oil and Natural Gas

Exchange: NASDAQ

Ticker Symbol: USEG

Price per Share (2/10/2014) $3.51

Market Capitalization (2/10/2014) $96.89MM

Avg. Daily Trade Volume (6 mo.) 177,850

52 Week Price Range 1.45 - 4.06

Shares Outstanding (9/30/13) 27.68 MM

Book Value Q3-2013 $110.0 MM

Areas of Activity / Participation

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Core Areas of Focus: Williston Basin / South Texas Unconventional Resource Development

Austin Chalk / Eagle Ford Shale / Buda Limestone

Production / Development Program

Bakken/Three Forks Production / Development Program

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Q3 2013 total net production 101,987 BOE

Q3 2013 Average Daily Production 1,109 BOE/D

Oil (Bbls % total) 79%

Natural Gas (Mcf % total) 17%

Natural Gas Liquids (Bbls % total) 4%

Proved Reserves (Year End 2012) 2.913 MBOE

Oil (Oil % total) 90%

Natural Gas (Mcf % total) 10%

PV-10 76.5 MM

Gross Participated Acreage 152,283*

Net Participated Acreage 12,550*

Corporate Overview - Operations

*Presented as of March 1, 2013 – All regional oil and gas participated acreage (2012 Form 10-K)

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2014 Oil and Gas Capital Expenditures Budget $30.2 MM

South Texas (Buda Limestone Formation) $12.6 MM

~12 Gross / ~3.15 Net Drill Locations

Williston Basin (Bakken & Three Forks Formations) $9.6 MM

~23 Gross / ~1.1 Net Drill Locations

Acquisitions / Accelerated Development Budget $8 MM

Total $30.2 MM

2014 Oil and Gas Capital Expenditures Plan Summary

Contango (Operating Partner) has committed to a continuous drilling program in in the Booth-Tortuga acreage block in 2014; contingent upon continued economic success in the program

E&P Assets

Williston Basin Drilling Programs Bakken / Three Forks Formations

North Dakota:

Drilling programs in Williams, McKenzie and Mountrail Counties, North Dakota

• Interests in 65 participated drilling units (majority 1,280 acre spacing)

• 3,225 net participated acres

• Overall potential for 390* – 520** gross drilling locations

• ~15* - 20** net additional wells on a going forward basis

• Net daily production 863 BOE/D at 9/30/13

Montana:

• ~12.5% working interest in 30,382 gross (2,367 net) acres prospective for the Bakken and Three Forks formations, undeveloped

• Located in Daniels, County Montana

• Monitoring regional development activity by industry peers

• Operator required to drill well to test Bakken/Three Forks formations by 12/31/2015

*Assumes 3 Bakken and 3 Three Forks wells per formation, per 1280 acre unit **Assumes 4 Bakken and 4 Three Forks wells per formation, per 1280 acre unit 8

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Williston Basin Assets

• 100 Gross Participated

Wells (January 2014)

• 2014 Regional CAPEX • $9.6 MM • ~23 Gross

Participated Wells

• ~390*-520** Gross Additional Participated Development Locations

• ~15*-20** Net Additional Wells Participation

*Assumes 3 Bakken and 3 Three Forks wells per formation, per 1280 acre unit **Assumes 4 Bakken and 4 Three Forks wells per formation, per 1280 acre unit

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Williston Basin, North Dakota Wells in Progress

Well Name Operator Formation Spud Date Working Interest

Net Revenue Interest

Status

Excalibur 4-25-36H Emerald Oil Inc. Three Forks 6/24/2013 0.82% 0.61% Producing

Excalibur 3-25-36H Emerald Oil Inc. Bakken 8/23/2013 0.82% 0.61% Producing

Caper 5-22-15H Emerald Oil Inc. Bakken 7/12/2013 0.73% 0.57% Producing

Caper 6-22-15H Emerald Oil Inc. Bakken 7/14/2013 0.73% 0.57% Producing

Pirate 5-2-11H Emerald Oil Inc. Bakken 9/15/2013 3.67% 2.82% Producing

Pirate 6-2-11H Emerald Oil Inc. Bakken 10/10/2013 3.67% 2.82% Producing

Hovde 33-4 2H Statoil Bakken 1/12/2013 2.47% 1.95% Producing

Wayne Zumhof Federal 5300 44-15T Oasis Petroleum Three Forks 7/19/2013 4.34% 3.25% Completing

Hovde 33-4 #3H Statoil Bakken 10/28/2013 2.45% 1.94% Completing

Hovde 33-4 #4H Statoil Bakken 11/8/2013 2.45% 1.94% Completing

Aspen Federal 5300 24-15B Oasis Petroleum Bakken 10/12/2013 4.34% 3.25% Drilled - completion pending

Caper 2-15-22H Emerald Oil Inc. Bakken 9/25/2013 0.73% 0.57% Drilled - completion pending

Birch Federal 5300 24-15T Oasis Petroleum Three Forks 11/3/2013 4.34% 3.25% Drilled - completion pending

Caper 4-22-15H Emerald Oil Inc. Bakken 9/21/2013 0.73% 0.57% Drilled - completion pending

Power Federal 5300 14-15B Oasis Petroleum Bakken 12/5/2013 4.34% 3.25% Drilled - completion pending

Lloyd 34-3 #3H Statoil Bakken 12/25/2013 2.15% 1.70% Drilling

Pirate 4-2-11H Emerald Oil Inc. Bakken 1/9/2014 3.67% 2.82% Drilling

Average: 2.50% 1.91%

Non Op Model: Partnered with leading Williston Basin Operators

Operational Results Williston Basin

Source: U.S. Energy Corp. 11

Approximately 863net BOE/D

9/30/13

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Williston Basin Net BOE/Month by Operator/Program

Q3 2012 Acquisition BOE Zavanna BOE Brigham-Statoil BOE

Contango Operated: • Leona River / Booth-Tortuga prospects; Zavala and Dimmit Counties, Texas • U.S. Energy Corp. has 30% WI in 13,583 gross (4,075 net) acres

• ~10,140 gross (3,042 net) acres Booth-Tortuga Prospect • ~3,343 gross (1,003 net) acres Leona River Prospect

U.S. Enercorp Operated: • Big Wells prospect; U.S. Energy Corp. has 15% WI in 4,243 gross (636 net) acres in Dimmit

County, TX

• Multiple stacked formations present in each prospect: • Austin Chalk • Eagle Ford • Buda • Georgetown • Pearsall

• Recently announced initial success

in the Buda limestone formation; delineation of Buda acreage currently underway at Booth-Tortuga

South Texas Multiple Formation Potential

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South Texas

Leona River Acreage Block

Booth – Tortuga Acreage Block

La Salle

Frio

Dimmit

Zavala

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Booth-Tortuga Buda Activity Map

• 5 gross producing wells

• January average gross production of 2,313* BOE/D

• January average production of 468* BOE/D net to USEG

• 4 gross wells in progress

• 1 well temp. abandoned

• ~ 75% oil / 25% gas

• ~40* gross (~10** net) potential locations based on 320 acre spacing

• ~80* gross (~20** net) potential locations based on 160 acre spacing

* Estimated field production data ** Subject to geological continuity & additional

delineation of acreage and ultimate spacing configuration

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Buda Limestone Formation Well Data

Beeler #2H – Producing

• Initial Production Rate 859 Gross BOE/D • Cumulative Production (1/31/14) 136,716 Gross BOE

Beeler #3H – Producing

• Initial Production Rate 1,260 Gross BOE/D • Cumulative Production (1/31/14) 57,681 Gross BOE

Beeler #4H - Producing

• Initial Production Rate 1,430 Gross BOE/D • Cumulative Production (1/31/14) 96,997 Gross BOE

Willerson #1H – Producing

• Initial Production Rate 1,039 Gross BOE/D • Cumulative Production (1/27/14) 32,581 Gross BOE

Wood Unit B #1H – Producing • 30 Day Avg. Initial Production Rate 338 Gross BOE/D

Beeler #7H – Producing

• Initial Rates Positive

Beeler #8H – In Progress • Completing

Willerson #2H – In Progress • Drilling (Spud 2/3/14)

Beeler #6H – In progress • Drilling (Spud 2/10/14)

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3,678 net acres (Booth-Tortuga / Big Wells)

Booth-Tortuga Prospect: 30% WI / 22.5% NRI

Big Wells Prospect: 15% WI / 11.25% NRI

• Approximate $4 million gross drilling cost per well

• Estimated ultimate recovery of 400,000 BOE (Internal Company Estimates)*

Buda Economics

Estimated Net Present Value*

Assumptions

AFE $ 4,000,000

Oil Price (per Bbl) $ 100

Royalty 25.0% Production Tax 4.6% Production Required for Payout (Bbls) 56,818

Revenue $ 5,681,818

Royalty (1,420,455)

Production Tax (261,364)

Net $ 4,000,000

320 Acre Spacing 160 Acre Spacing

Prospect Locations PV-10 (net) Locations PV-10 (net)

Booth-Tortuga 30 $ 120,000,000 60 $ 240,000,000

Big Wells 10 $ 20,000,000 20 $ 40,000,000

Total 40 $ 140,000,000 80 $ 280,000,000

* Figures and calculation are based on internal Company estimates. There is no assurance that the above illustrations will be representative of actual drilling locations, drilling results, estimate EUR’s or economics.

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Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

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South Texas Program Net BOE/Month by Well

Booth, Lloyd RE #2 Booth, Lloyd RE #3 Booth, Beeler RE (D) #9 Booth, Lloyd W RE #5

Booth, Weaver RE #1 Huffman Unit #1 RE Booth, Jetero Gr #10 Tortuga RE #1

Tortuga RE #4 Tortuga-B Unit #2 RE Tortuga-C Unit #5 KM Ranch #1H

KM Ranch 2H Beeler 1H Beeler 2H Beeler 3H

Operational Results Eagle Ford / Austin Chalk / Buda Limestone

Source: U.S. Energy Corp. - chart on left represents actual sales volumes vs. January production estimates – January production estimates are before field use and flaring of gas

and actual production vs. actual sales. As a result, January production sales volumes when final will differ than represented.

Eagle Ford

Approximately 285 net BOE/D 9/30/13

Buda Limestone

Estimated Production January 2014 net

BOE/Month All producing wells

Austin Chalk

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Operational Results – All Oil & Gas Programs

Source: U.S. Energy Corp.

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2012-13 Production by Region

Gulf Coast Texas (Buda/Eagle Ford/Austin Chalk) Williston Basin

Approximately 1,240 net BOE/D

9/30/13

Financials

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Select Financial Data

Financial Metrics per Share (Sept. 30, 2013)

Cash and Equivalents $0.20

Investment in Oil & Gas $3.05

Investment in Mt. Emmons $0.75

Other Assets (Corp. Headquarters, etc.) $1.53

Total Book Value $4.53

Strong Balance Sheet (Sept. 30, 2013)

Cash and Cash Equivalents $5,538

Total Assets (Book) $125,356

Long-Term Debt (net of current portion) $7,000

Total Shareholder Equity $110,021

EBITDAX (9 months ended Sept. 30, 2013) $11,467 [ $ thousands ]

[ $ thousands ]

Hedges – Risk Management

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Quantity

Settlement Period Counterparty Basis (Bbl/d) Strike Price

Crude Oil Costless Collar

01/01/14 - 06/30/14 Wells Fargo WTI 300 Put: $ 90.00

Call: $ 95.00

Crude Oil Costless Collar

01/01/14 - 06/30/14 Wells Fargo WTI 300 Put: $ 90.00

Call: $ 97.25

Crude Oil Costless Collar

07/01/14 - 12/31/14 Wells Fargo WTI 300 Put: $ 90.00

Call: $ 98.40

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Growth Metrics

0

$10 M

$20 M

$30 M

$40 M

2009 2010 2011 2012

Oil & Gas Revenue

0

0.5 M

1.0 M

1.5 M

2.0 M

2.5 M

3.0 M

3.5 M

2009 2010 2011 2012

Reserves (BOE)

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$5 M

$10 M

$15 M

2010 2011 2012

EBITDAX

0

$2 M

$4 M

$6 M

$8 M

$10 M

2010 2011 2012

G&A Expense

*

*

* USEG sold an undivided 75% working interest in the Rough Rider, SE HR, and Yellowstone acreage blocks under two separate transactions for a total of $30.4 million during YE 2011 / Q1 2012

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

Stock Price

0 K

500 K

1,000 K

1,500 K

Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

Volume

Average Daily Volume

~177,000 (6 mos.)

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Key Takeaways / Investment Highlights

Catalysts:

• Active drilling programs in the Bakken and Three Forks formations – Williston Basin North Dakota

• Experienced Management Team / Attractive development portfolio

• Financial flexibility / Strong balance sheet and liquidity for growth

• Focused on liquids rich resource plays / Accretive value for shareholders

Buda Limestone

• Encouraging results in initial test wells

• Continuous drilling scheduled through the balance of 2014

• Exploration and development anticipated to be funded from cash flow

• Delineation program currently underway; potential for “outstanding” Buda formation economics in Booth-Tortuga and Big Wells Prospects

• Executing on 2014 growth plan

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Nasdaq: USEG www.usnrg.com

Shareholder Contact: NASDAQCM: USEG Headquarters: U.S. Energy Corp. 877 N. 8th W. Riverton, Wyoming 82501 P. 1-800-776-9271 F. 1-307-857-3050

Investor Relations: Reggie Larsen Director of Investor Relations P. 1-800-776-9271 M. 1-307-851-4043 Reggie@usnrg.com Web site: www.usrng.com